The Fall of California (and the Rise of North Dakota)
Stephen Moore, in the Wall Street Journal, on yet another aspect--the war against energy production--of the collapse of the Golden State:
While North Dakota's oil production has tripled since 2007 (to more than 150 million barrels in 2011), the Golden State's oil production has fallen by a third in the past 20 years, to 201 million barrels last year from 320 million in 1990. The problem isn't that California is running out of oil: In 2008, when the USGS estimated four million barrels of recoverable oil from the Bakken, it estimated closer to 15 million barrels in California's vast Monterey Shale.
Rather, California's problem is politicians—at the behest of their green-energy allies—deciding to wall off the state from developing evil fossil fuels....[w]ith its prohibitive environmental regulations, state cap-and-trade law, costly renewable energy mandates and 40 years of prohibitions on almost all offshore drilling....This month, according to North Dakota's Department of Mineral Resources, California is no longer America's third-largest energy-producing state—leapfrogged by North Dakota.
A population of 38 million is being held hostage, to overstate the case only a little, by the unwillingness of a few tens of thousands in Malibu, Santa Monica, and Venice (yes, Rob's neighborhood) to risk cluttering their ocean views.
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Dec '10
Re: The Fall of California (and the Rise of North Dakota)
Chris Campion
I had the chance to drive from San Jose down to Monterey once, about 12 years ago, and saw a lot of what was there on the coastline between those two locations - absolutely nothing. So the "pristine" nature of the coastline needing preserving makes no sense at all compared to the viability of the state, once the nation's economic powerhouse, rapidly turning into an abandoned city - in the form of an enormous state.
And for what, exactly? What benefit has been granted to Californians for all that's been done? Tell me, somebody. I'd like to know. · 3 hours ago
Hey! Sea otters, abalone and mule deer are Californians too!
May '10
Re: The Fall of California (and the Rise of North Dakota)
Peter, Don't worry be happy! This will all sort itself out...albeit with trauma and pain. I've spent around 4 decades turning around dying operations & companies around the globe. A pre-condition for the serious initiation of the improvement process (as any turn around guy can tell you), is a recognition of imminent disaster. This will happen sooner rather than later unless the federal govt. steps in to "save" the day. When the wall is hit, you will be amazed at how fast people start acting in economic self interest - seamlessly introducing things impossible short months before. A whole lot of banks, bondholders, pensioners, & pension funds and most other folks will take a serious hit - a lot getting wiped out financially. Hollywood might well flee in self preservation. But it will get a whole lot better & faster than you think is possible.
When there is absolutely, positively, no other choice, people will do the right thing. California (like Argentina) is blessed with so much natural wealth, that it can recover from this idiocy in less time than you think (albeit with a ton of process pain).
Sep '11
Re: The Fall of California (and the Rise of North Dakota)
Back during the 50s and 60s when there was still some business sense in the state, the THUMS (Texaco, Humble, Union, and Mobile) drilled for oil right off the coast of Long Beach. To get permission to drill so close to shore, they developed plans with LB and CA to disguise the features. The wells are now on their downward trajectory as far as production goes, but the (man-made!) islands themselves are developing wildlife, with the help of non-profits and Occidental (current owner).
If Californian politicians had any sense of history, they'd realize that oil drilling does not have to be a blight on the environment.
Jan '12
Re: The Fall of California (and the Rise of North Dakota)
If I had a dollar for every time I've said that about politicians . . .
Mar '12
Re: The Fall of California (and the Rise of North Dakota)
This comment is a bit off topic, but hopefully it will offer some context. I went to Williston last October on my way back from a hunting trip to Montana. It was unreal. I started seeing oil field service trucks about 50 miles west of Williston and, as I got into town it was an absolute beehive of activity. There were new buildings for Bobcat, John Deere, Vermeer, Brigham Exploration, etc., surrounded by fencing and new parking lots. There were new roads, new bridges, new buildings and people driving brand-new Ford F-250 super duty trucks everywhere.
I found one spot at an Applebee's bar and talked to a couple of young guys who had come from Georgia to work in the shale fields and were making a base salary of $65,000--they'll make $85,000 with overtime. They were living in a (full) RV park, and were putting money away so they could have some savings to invest. The farmers, ranchers, and other townspeople who were getting bonus and royalties from their landownership were making so much money they didn't know what to do with it (after they bought a new Ford F-250).
Mar '12
Re: The Fall of California (and the Rise of North Dakota)
Seems to me that's a pretty positive story of success in America. Some, regrettably, don't think so. And some people think North Dakota is a vast wasteland that no one wants to live in. But that's all in the eye of the beholder. I think the state is beautiful--open spaces, rolling hills, mesas, and a big blue sky. It has forests that dot the prairie and wide rivers and great people. It's cold in the winter, but the guys I know from Bismarck or Fargo just compensate by hunting snow mobiling, ice fishing, cross-country skiing, etc. It has great weather in the summer and fall and great golf courses. The fact that people on the coasts will denigrate life in North Dakota is mere provincial myopia. They say the same thing about every state from Indiana to Nevada, Texas to Montana.
Aug '10
Re: The Fall of California (and the Rise of North Dakota)
Fargo has one of the niftiest little boutique hotels in which I've ever stayed for a night.
Feb '11
Re: The Fall of California (and the Rise of North Dakota)
"A population of 38 million is being held hostage, to overstate the case only a little, by the unwillingness of a few tens of thousands in Malibu, Santa Monica, and Venice (yes, Rob's neighborhood) to risk cluttering their ocean views."
The shale play is in the Bakersfield - Fresno region. What does that have to do with an ocean view?
May '11
Re: The Fall of California (and the Rise of North Dakota)
It's a religious matter. Common sense does not apply.
Plus, imagine the fracking causes earthquakes paranoia that would set in.
Aug '10
Re: The Fall of California (and the Rise of North Dakota)
ctlaw
It's a religious matter. Common sense does not apply.
Plus, imagine the fracking causes earthquakes paranoia that would set in. · 22 minutes ago
Max Zorin. But I repeat myself.
Oct '10
Re: The Fall of California (and the Rise of North Dakota)
I disagree. Obama's pet project is to apply the California Model to the entire U.S.A. And he'll succeed if he gets re-elected, starting with hooking everybody up on Obamacare.
raycon: The few remaining Californians, and that includes Peter and Rob, will soon be leaving and landing in Colorado, already suffering from coastal pollution, and possibly even North Dakota and Texas and other still free states.
Unfortunately, living there there this long, the unmistakable taint of liberalism is still on your persons.
Be sure to wipe your feet before you emigrate across our border. · Mar 11 at 4:31pm
Oct '10
Re: The Fall of California (and the Rise of North Dakota)
what are the top 3 issues republicans in california can use to win?
1) energy
2) education
3) good governance (giuliani style)